Supermarket chain Morrisons has come under significant criticism from the Usdaw union for what it describes as a failure to meaningfully engage in pay negotiations. The retailer, headquartered in Bradford, is currently locked in a dispute with the union over its refusal to offer wage increases beyond the statutory national living wage.
Union Accusations and Company Stance
The Union of Shop, Distributive and Allied Workers, which represents approximately 45,000 Morrisons employees, has expressed deep disappointment with the company's position. Usdaw has accused Morrisons of not providing any uplift beyond the mandatory minimum wage, a move that marks a significant shift for a retailer once known as one of the highest-paying supermarkets in the sector.
Financial Pressures Cited
Morrisons has defended its decision by pointing to substantial financial challenges. The company cites £200 million in unexpected cost pressures, particularly changes to national insurance contributions, as a primary factor. Additionally, the supermarket operator highlights intense competition within the retail sector and disruption from a cyber attack targeting its technology provider Blue Yonder in late 2024.
Current Wage Structure and Future Increases
Currently, the national living wage stands at £12.21 per hour for workers aged 21 and above. This is scheduled to increase by 4.1% to £12.71 per hour in April 2026. For younger workers aged between 18 and 20, the minimum wage will see an 8.5% rise to £10.85 per hour. Morrisons has indicated that these statutory increases will form the basis of their pay structure moving forward.
Investment Claims and Union Response
A Morrisons spokesman stated that the company has invested over £100 million in colleague hourly pay during the last financial year, with a further £70 million investment planned for the upcoming national living wage increase. The spokesman emphasised the need to balance pay offers with business performance and long-term stability.
However, Usdaw's national officer Darren Matthews responded strongly, questioning whether the company's stance results from private equity ownership replacing what was once a family-run business. Matthews expressed particular concern about the lack of meaningful engagement in negotiations and urged Morrisons to reconsider its position and return to the bargaining table.
Next Steps in the Dispute
With Morrisons unable to present an offer to the Usdaw national committee at this time, the union has confirmed it will proceed with a ballot of its membership. The supermarket maintains that it wishes to continue dialogue with Usdaw, but the union's criticism suggests significant dissatisfaction with the current state of negotiations.
The dispute highlights ongoing tensions in the retail sector between workforce expectations and corporate financial pressures, with Morrisons now positioned as a national living wage employer rather than the industry leader in pay it once was.
